February 2024 Volume 6

OPERATIONS & MANAGEMENT

Sales & Marketing in businesses that have a high level of quoting activity. A cross-functional team approach using the powerful value stream mapping methodology is best. A value stream map of the current process is constructed, including important process metrics. The team then creates a future state map for a new process that will meet specific, measurable goals such as quote turnaround time. The organization then works to implement the envisioned new process over a 6-to-12-month period. The details of the future state will vary based on the organization. For example, some organizations put great effort involving multiple departments into creating a precise estimate. What is really needed accuracy-wise is a common discussion by teams seeking to improve quoting processes and is usually part of a broader discussion on what specific information is needed, by whom and when. The team then determines the best way to provide the required information. Simple tools have often been developed and provided to sales personnel so that they can immediately generate quotes. The underlying guidelines to generate accurate quotes, including quoted lead times are periodically reviewed, updates made to the tool or tools, and provided to sales personnel in a proactive manner. Please note that this is just one example, and not applicable to all business situations. What I can say unequivocally is that greater than 50% reductions in quote turnaround time is very typical, as well as significant improvements in quote accuracy, when applying the value stream mapping methodology. Addressing information quality issues usually involves once again understanding what specific information is needed, by whom and when. Incomplete and even inaccurate information is often the result of a lack of awareness of the needs of downstream processes, as well as their impact. Simple checklists used by upstream personnel can greatly help. At times, mistake proofing techniques can be applied via required and validated fields in whatever system tools that are being used. Without Standards There Can Be No Improvement The second breakout exercise was on the topic of standardized sales and marketing processes. Standardized work is a foundation principle of Lean. Without some semblance of standardized work there will forever be chaos. How can any organization see through the chaos to identify problems? Further, poorly defined processes are difficult to measure and manage. “Everything is different, it’s impossible to have a standard process for what we do” is a common response when asked for a reason for the absence of standards. This is an excuse and not a true reason. There is great pushback by knowledge workers, which sales and marketing personnel represent, to this foundation principle. Why? Knowledge workers feel it will result in a loss of autonomy. “You are going to take away my creativity” is an often heard statement when knowledge workers resist defining standard work for what they do. The fact of the matter is, we only standardize what is important. If it isn’t important, people can go about a process any way they deem best. For example, there are numerous standard sales processes out there. All involve some form of ‘establishing rapport’ as an early step

in the process. It may not be necessary to standardize how rapport is established from salesperson to salesperson, just that rapport is achieved. One salesperson may share personal information while another may engage in talk of a different nature. What did the conference attendees discuss on this important topic? Several stated they did indeed have standardized processes for sales and marketing, while a few admitted no such thing existed in their organization. Most identified that there are ‘gaps’ in their existing processes. ‘Inconsistency’ was the most common comment by far. It could be argued that inconsistency means no real standard exists. Nonetheless, what can be done to close ‘gaps’ in this area? As mentioned, there are several general sales processes that exist that can be used by an organization as a framework. The devil is in the details. How the various steps will be performed will vary based on market and business circumstances. Similarly, effective marketing methods will vary based on the market or markets a company serves. It is why we typically take a rapid experiment approach to improving and standardizing sales and marketing processes. Plan-Do-Check Act (PDCA) is the time-tested improvement process upon which all other improvement methodologies are based. It involves identifying specific process changes (Plan), conducting deliberate experiments (Do), assessing, and sharing the results of those experiments (Check), and standardizing on what has been proven effective (Act). Involvement and collaboration between sales or marketing personnel to identify the best methods is essential and will greatly help overcome resistance. In time, the most effective and efficient processes standards can be determined and documented, and the appropriate individuals trained. But the work does not stop there. Ongoing monitoring and management of these important processes are essential. Things can change quickly in the sales and marketing world. An example of this was provided as part of the presentation. Sales declined at a company over the course of a year. The initial belief was that this was indicative of a general trend in the market. A closer examination revealed a very different story. Historic marketing techniques were no longer effective. Problems arose with several on-line sources for leads. The details are irrelevant. What is important is that methods were not in place to continually monitor the quality of leads. Simple measures such as conversion rates and other techniques would have provided an early indicator that something was amiss. Such techniques represent a ‘control plan’ which should be part of the ‘Act’ stage of the PDCA process.

FIA Marketing Conference 2023

FIA MAGAZINE | FEBRUARY 2024 51